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Question

The mean of a certain number of observations is 35. What is the new value of the mean if each observation is increased by 20%.

A
35
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B
40
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C
42
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D
None of these
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Solution

The correct option is C 42
Let the count of observations is N
Mean =Sum ofd observationsN=35 ....Given
Let the observations be x1,x2,x3,......,xN
Sum of observations =x1+x2+x3+......+xN=35N
If each observation is increased by 20 percent, then
New sum of observations =x1+x1×0.2+x2+x2×0.2+x3+x3×0.2+......+xN+xN×0.2
= sum x1+x2+x3+......+xN+0.2x1+x2+x3+......+xN
=(1+0.2)x1+x2+x3+......+xN
=1.2×35N=42.0×N=42N
New Mean =42NN=42

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